Some Zur Rose Group AG (VTX:ROSE) Analysts Just Made A Major Cut To Next Year's Estimates

One thing we could say about the analysts on Zur Rose Group AG (VTX:ROSE) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

After the downgrade, the eight analysts covering Zur Rose Group are now predicting revenues of CHF1.7b in 2021. If met, this would reflect a huge 22% improvement in sales compared to the last 12 months. Per-share losses are expected to creep up to CHF10.38. Yet prior to the latest estimates, the analysts had been forecasting revenues of CHF2.0b and losses of CHF7.03 per share in 2021. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.

Check out our latest analysis for Zur Rose Group

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Zur Rose Group's past performance and to peers in the same industry. It's clear from the latest estimates that Zur Rose Group's rate of growth is expected to accelerate meaningfully, with the forecast 22% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 8.9% over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.6% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Zur Rose Group to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that analysts increased their loss per share estimates for this year. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. Given the serious cut to this year's outlook, it's clear that analysts have turned more bearish on Zur Rose Group, and we wouldn't blame shareholders for feeling a little more cautious themselves.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Zur Rose Group analysts - going out to 2025, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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